1.1 	A bill for an act
1.2 	relating to telecommunications; modifying switched access services regulation;
1.3 	amending Minnesota Statutes 2008, sections 237.12, by adding a subdivision; 
1.4 	237.16, subdivision 9; repealing Minnesota Statutes 2008, section 237.12, 
1.5 	subdivision 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2008, section 237.12, is amended by adding a 
1.8 	subdivision to read:
1.9 		Subd. 3a.Switched access services. (a) For the purposes of this subdivision, "access 
1.10 	restructure support" means revenues approved by the commission for collection by a local 
1.11 	exchange carrier that are equal to the amount by which the loss of revenue resulting from 
1.12 	the lower rate for intrastate switched access service required under paragraph (b) reduces 
1.13 	the local exchange carrier's total revenues below its cost to deliver basic local service.
1.14 	(b) The commission shall not review or set rates for switched access service except 
1.15 	as provided by this subdivision. Within 30 days of the effective date of this subdivision 
1.16 	each local exchange carrier must reduce and thereafter maintain its intrastate switched 
1.17 	access rate elements at a level no higher than the then-current interstate switched access 
1.18 	rate for corresponding elements.
1.19 	(c) A local exchange carrier may petition the commission to receive access 
1.20 	restructure support. The petition must contain information demonstrating that the 
1.21 	reduction in intrastate switched access revenues required under paragraph (b) prevents the 
1.22 	local exchange carrier from recovering its cost of providing basic local service without 
1.23 	additional financial support. The commission may accept, reject, or modify the amount of 
1.24 	access restructure support requested in the petition.
2.1 	(d) The commission may provide access restructure support to a local exchange 
2.2 	carrier by:
2.3 	(1) approving a rebalancing of the carrier's local exchange residential and local 
2.4 	exchange business rates;
2.5 	(2) making payments to a local exchange carrier from the universal service fund 
2.6 	established under section 237.16, subdivision 9; or
2.7 	(3) any combination of the mechanisms in clauses (1) and (2).
2.8 	(e) The commission may at any time reexamine, upon its own initiative or upon 
2.9 	request by a local exchange carrier, a previous order to provide or deny access restructure 
2.10 	support.

2.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.12 	Sec. 2. Minnesota Statutes 2008, section 237.16, subdivision 9, is amended to read:
2.13 		Subd. 9.Universal service fund. (a) The commission shall establish and require 
2.14 	contributions to a universal service fund, to be supported by all providers of telephone 
2.15 	services, whether or not they are telephone companies under section 237.01, including, but 
2.16 	not limited to, local telephone companies, independent telephone companies, cooperative 
2.17 	telephone companies, municipal telephone companies, telecommunications carriers, 
2.18 	radio common carriers, personal communication service providers, and cellular carriers. 
2.19 	Services that should be considered for inclusion as universal include, at a minimum, 
2.20 	single-party service including access, usage and touch-tone capability; line quality capable 
2.21 	of carrying facsimile and data transmissions; equal access; emergency services number 
2.22 	capability; statewide telecommunications relay service for the hearing-impaired; and 
2.23 	blocking of long-distance toll services. The fund must be administered and distributed 
2.24 	in accordance with rules adopted by the commission and designed to preserve the 
2.25 	availability of universal service throughout the state. Any state universal service fund 
2.26 	must be coordinated with any federal universal service fund and be consistent with section 
2.27 	254(b)(1) to (5) of the federal Telecommunications Act of 1996, Public Law 104-104. The 
2.28 	department shall make recommendations to the legislature by January 1, 1996, regarding a 
2.29 	plan for contributions to and expenditures from the universal service fund. In particular, 
2.30 	the department shall address the following issues:  
2.31 	(1) what additional services should be included in the basic set of essential telephone 
2.32 	services which the state should encourage in its mandate to ensure universal service;
2.33 	(2) whether and how expenditures from the fund should be used to ensure citizens 
2.34 	access to local government and other public access programming; and
3.1 	(3) whether expenditures from the fund should be used to encourage construction 
3.2 	of infrastructure for, and access to, advanced services, especially in high-cost areas of 
3.3 	the state, and, if the commission determines the fund should be used for this purpose, a 
3.4 	plan to accomplish these goals.
3.5 	(b) Revenues from the fund may be used to pay access restructure support approved 
3.6 	by the commission under section 237.12, subdivision 3a.

3.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.8 	Sec. 3.  REPEALER.
 3.9 	Minnesota Statutes 2008, section 237.12, subdivision 3, is repealed.

3.10 	EFFECTIVE DATE. This section is effective the day following final enactment.